Adani has turned Bangladesh's power back on after cutting it in half for four months because they weren't paid. The Indian company delivers 1,600 MW of electricity from its coal plant in Jharkhand, India. Bangladesh Power Development Board chairman Rezaul Karim told Bloomberg they're paying Adani regularly again and receiving all the electricity they need. The full power came back about two weeks ago.
The Indian energy giant cut off Bangladesh's electricity last October 31 when the country missed several payments during its financial troubles. Later, Bangladesh asked Adani to keep sending just half the normal amount because they expected lower demand during the winter months. They promised to pay what they owed eventually. Reports indicate the unpaid bills reached $850 million but have decreased to $800 million. Bangladesh plans to pay everything within six months.
Adani had waited many months for payment before cutting back power. The two sides argued about exactly how much money was owed. Having full electricity again helps Bangladesh avoid widespread blackouts during the hot summer months when people use more power. The original agreement between Adani and Bangladesh lasted 25 years, signed back in 2017 when Sheikh Hasina was prime minister. Sheikh Hasina had good relations with India, where she has lived since fleeing her country.
Many people in Bangladesh believe this deal benefits Adani more than local electricity users. The agreement faces more questions since protesters forced Hasina out of office in August 2024. The temporary government, led by Nobel Peace Prize winner Muhammad Yunus, created a team to examine major energy contracts from the previous administration. Bangladesh wants better terms, claiming they pay more than similar deals elsewhere. They also accuse Adani of keeping tax benefits they should receive, something the company denies completely.
The Indian energy giant cut off Bangladesh's electricity last October 31 when the country missed several payments during its financial troubles. Later, Bangladesh asked Adani to keep sending just half the normal amount because they expected lower demand during the winter months. They promised to pay what they owed eventually. Reports indicate the unpaid bills reached $850 million but have decreased to $800 million. Bangladesh plans to pay everything within six months.
Adani had waited many months for payment before cutting back power. The two sides argued about exactly how much money was owed. Having full electricity again helps Bangladesh avoid widespread blackouts during the hot summer months when people use more power. The original agreement between Adani and Bangladesh lasted 25 years, signed back in 2017 when Sheikh Hasina was prime minister. Sheikh Hasina had good relations with India, where she has lived since fleeing her country.
Many people in Bangladesh believe this deal benefits Adani more than local electricity users. The agreement faces more questions since protesters forced Hasina out of office in August 2024. The temporary government, led by Nobel Peace Prize winner Muhammad Yunus, created a team to examine major energy contracts from the previous administration. Bangladesh wants better terms, claiming they pay more than similar deals elsewhere. They also accuse Adani of keeping tax benefits they should receive, something the company denies completely.
